What is Retail Assortment Architecture and How To Use It To Create an Optimal Shopping Experience
Sk Sabbir Uddin
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If you've ever gone shopping and been overwhelmed by the number of choices, you can thank retail assortment architecture
The goal is to create an optimal customer shopping experience by offering a wide variety of merchandise while keeping inventory levels low enough to avoid costly markdowns. In this blog post, we'll take a closer look at what retail assortment architecture is and how it can benefit your business!
What is retail assortment architecture and what does it involve
Retail assortment architecture is the process of designing and managing the mix of products that a retailer offers for sale. It involves understanding the needs of customers, the capabilities of suppliers, and the constraints of the retail channel.
By carefully balancing these factors, retail assortment architects can create an optimized mix of products that meets the needs of customers while also maximizing sales and profitability.
In practice, retail assortment architecture involves a number of different activities, including market analysis
Product selection involves identifying and sourcing the right mix of products to offer for sale. Space planning determines how products will be displayed in the retail environment. And pricing strategy determines how products will be priced in order to drive sales and profit.
By carefully considering all of these factors, retail assortment architects can develop an optimized mix of products that meets the needs of customers while also maximizing sales and profitability.
How can you use retail architecture to improve your business?
There are a number of ways that you can use retail assortment architecture to improve your business. By understanding the needs of customers and the constraints of the retail channel, you can develop a mix of products that meets customer needs while also maximizing sales and profitability.
On another hand, by carefully considering all of the factors involved in retail assortment architecture, you can develop a plan that is tailored to your specific business.
By doing so, you can ensure that your business is able to offer the right products to customers and maximize sales and profits.
The benefits of using retail assortment architecture
There are a number of benefits to using retail assortment architecture, including:
By carefully considering all of these factors, you can develop a plan that is tailored to your specific business and ensure that your business is able to offer the right products to customers and maximize sales and profits.
How to get started with retail in-store product assortment architecture
If you're interested in using retail assortment architecture to improve your business, there are a few things you can do to get started.
1. Understand what store product assortment architecture is?and its goal
The goal of store product assortment architecture is to create a mix of products that meets the needs of the retailer's target market while also maximizing profits. There are three main types of store product assortment architectures: exclusive, limited, and full.
Exclusive store product assortment architectures offer only a limited selection of products, usually from a single brand or manufacturer.
Limited store product assortment architectures offer a broader selection of products than exclusive architectures but still focus on a specific type of product.
Full-store product assortment architectures offer the widest selection of products, including items from multiple brands and manufacturers.
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The type of store product assortment architecture that a retailer uses will depend on the needs of their target market and their goals for profitability.
2. Identify what merchandise is currently being sold in the store?
A retail in-store product assortment is the collection of merchandise that a store sells. When starting out, it is important to first identify what merchandise is currently being sold in the store. This can be done by looking at sales reports, observing customer buying habits, and talking to employees.
Once the current merchandise mix has been identified, it is then possible to start designing the product assortment. The goal is to create an assortment that will appeal to customers and help the store meet its sales goals.
To do this, various factors must be considered, such as the store's location, demographics of the target market, and available shelf space. By taking all of these factors into account, it is possible to create a retail in-store product assortment that will be successful.
3. Assess how well the products are selling and why?
A retailer's in-store product assortment is the set of products that the retailer offers for sale to customers. The assortment includes both the physical product and the information that the retailer provides about the product. The retail in-store product assortment architecture is the framework that the retailer uses to organize and manage the assorted products. The architecture includes both the physical layout of the store and the systems and processes that the retailer uses to manage the products.
When assessing how well the products are selling, retailers need to consider both the customer demand for the product and the retailer's ability to supply the product. Retailers use a variety of methods to assess customer demand, including customer surveys, sales data, and customer traffic data.
They use this information to determine which products are in high demand and which products are not selling well. Retailers also use this information to assess their own ability to meet customer demand. If a product is in high demand but the retailer cannot keep it in stock, then this is an indication that there is a problem with the retailer's supply chain.
Once a retailer has assessed customer demand and their own ability to supply the product, they can make decisions about which products to keep in stock and which products to remove from their shelves. This process is known as retail in-store product assortment optimization.
There are many different methods that retailers can use to optimize their in-store product assortment. Some common methods include reducing SKU count, reducing inventory levels, and using space tools such as planograms.
By optimizing their in-store product assortment, retailers can improve customer satisfaction, reduce inventory costs, and increase sales.
4. Evaluate customer needs and wants
Before starting to design a retail in-store product assortment, it is important to first evaluate customer needs and wants. This can be done through market research, surveys, interviews, and focus groups. Once the target customer's needs and wants are understood, the next step is to create a product assortment that meets those needs.
This can be done by looking at factors such as product type, price point, brand, and trend. It is also important to consider how the products will be displayed in the store. The goal is to create an inviting and appealing atmosphere that will encourage customers to purchase the products.
By taking the time to understand customer needs and wants, retailers can create an effective product assortment that will meet those needs and maximize sales.
5. Create a plan for new product categories that should be added to the store?
When creating a plan for new product categories that should be added to the store, there are a few things to keep in mind. First, consider the current product mix and see if there are any gaps that could be filled.
Next, take a look at what similar stores are offering and see if there is anything that could be unique to your store. Finally, think about any seasonal or trend-based items that could be added to the mix.
By keeping these factors in mind, you can develop a well-rounded plan for new product categories that will help to get your retail business started on the right foot.
6. Draft a budget for the proposed changes
Any successful retail operation must start with a well-crafted budget. This is especially true when it comes to changes in store architecture, as there are many potential costs that must be considered.
For example, when redesigning the layout of merchandise in a store, it is important to factor in the cost of new shelving, signage, and other fixtures. In addition, the cost of labor to implement the changes must also be taken into account.
Once all of these costs are considered, a budget can be created that will allow the changes to be made in a way that is both efficient and effective. By taking the time to draft a budget before making any changes, retailers can ensure that their operations are able to run smoothly and stay within their means.
In order to create an optimal customer shopping experience, retailers must carefully design and manage their product mix. This involves using assortment architecture to plan which products to carry and how to display them. Achieving the right balance between offering a wide variety of merchandise and keeping inventory levels low is key to avoiding costly markdowns. Have you ever found yourself overwhelmed by the amount of choice in a store? How do you think retailers can improve the customer shopping experience? Let us know in the comments below!